Oil falls ahead of US announcement on new Iran sanctions

Oil prices fell on Monday, according to Business Recorder, with Brent crude down $1.22, or 1.29 per cent, at $93.17 by 0035 GMT. West Texas Intermediate also eased to $85.86 a barrel, losing $1.20, as traders took profits before Washington was expected to announce further sanctions on Iran.

Both contracts had climbed more than 5 per cent over the previous week, marking a second consecutive weekly rise, as US-Iran peace talks stalled and restricted shipments through the Strait of Hormuz, a route that once carried roughly a fifth of global supply. Scott Bessent, the US Treasury Secretary, will address the media at 1800 GMT on Monday, having promised severe penalties on Iran, and President Donald Trump has threatened sanctions on Iran's trading partners as well.

Tehran has criticised the proposed measures, although President Masoud Pezeshkian has pressed for a negotiated outcome. Separately, IRNA reported on Saturday that Iran let several Iraqi oil tankers pass through the strait after repeated appeals from Baghdad. IG Markets analyst Tony Sycamore said the coming days should show which faction in Iran's leadership holds the upper hand, while Commonwealth Bank of Australia's Vivek Dhar said the effect of the measures remains uncertain.